Banking News
- Hana plans to set up bank unit to promote yuan services
Date: 9-Feb-2007 Sources: (Xinhua Online)
The Hana Financial Group Inc plans to set up a banking subsidiary in China to fully tap the market for yuan services in the country.
Hana Bank, wholly owned by Hana Financial, plans to submit applications this month to China's regulatory agencies to set up the subsidiary in Beijing, the Seoul-based bank said in a statement yesterday.
Hana will set up the subsidiary with a registered capital of two billion yuan (258 million U.S. dollars) to offer yuan services to Chinese clients without restrictions, the bank said.
China's banking watchdog said in November that overseas banks which want access to a full array of retail yuan business have to incorporate locally with a registered capital of not less than one billion yuan.
Overseas banks which do not comply with the condition can only take large-value deposits of more than one million yuan from Chinese clients.
Nine overseas banks including Citigroup Inc, HSBC and Standard Chartered have already gained the approval from the China Banking Regulatory Commission to set up their subsidiaries in Shanghai to offer the full array of yuan services to the Chinese.
China opened its banking sector to overseas players under its World Trade Organization commitments. Overseas banks poured money in China to benefit from the country's growing number of middle class and its growing economy.
The Korean bank has already teamed up with Industrial and Commercial Bank of China to set up a joint venture lender - Qingdao International Bank - in 1996. The venture only offers a limited yuan services.
Hana holds 72.3 percent of the venture with a capital of 26.11 million dollars while ICBC, the country's biggest lender, takes the remaining 27.7 percent.
The proposed Beijing-based subsidiary will be in charge of the Qingdao bank and Hana's existing bank network.
Hana aims to boost its network in China to 12 branches by 2014 from five in cities including Qingdao, Yantai, Weihai and Shanghai now.
Hana Financial is South Korea's fourth-largest institution by assets.
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